ALBUQUERQUE, N.M. (KRQE) – The city of Albuquerque is experiencing an apartment boom, adding hundreds of units across the metro this year.
Realtors say as homes in the metro get more expensive, people should expect more condos and apartments to pop up.
Kent Cravens has been working in real estate in Albuquerque for more than a decade.
“It would be a much better market if we had more homes to sell,” Cravens said.
He said going into 2020, homeowners should expect their property values to continue to go up as there are few homes on the market.
“It will remain what we consider a strong market,” Cravens said. “The only thing holding us back is inventory of homes.”
A quick look on Zillow shows there are about 2,300 homes for sale in Albuquerque right now.
Cravens said that number should be around 7,000, blaming things like a shortage of qualified workers on why houses are not being built.
“A lot of the labor is being taken up and going to other projects like the Facebook project and Netflix project,” Cravens said.
Now, apartment developers are hopping in to feed the housing demand.
The city’s planning director, Brennon Williams, said in 2019, the city saw the highest number of multi-family developments pop up in recent history, adding around 600 units city-wide.
“Many people would like a smaller house to take care of and a smaller living space to take care of,” Williams said.
While Williams said the apartment boom shows peoples’ tastes changing and wanting more options, Cravens believes it is also because many cannot afford houses that keep getting more expensive.
“It is more to do with high-wage jobs in the Albuquerque area,” Cravens said. “We need more of them. We need more companies to come to Albuquerque, grow their businesses and pay high wages, so these folks can afford that first home.”
According to Zillow, the home value in Albuquerque rose around 6% this year and is expected to increase another 4 percent in 2020.
Cravens adds there are currently more realtors available right now in Albuquerque than homes to sell, making it a true seller’s market.